Maryland Comptroller shared on May 27, 2026, through a summarized tax bulletin, relevant novelty concerning the applicability of the sales and use tax exemption for affiliated intra-group transactions involving the usage, consumption, and enjoyment of digital services.
On May 12, 2026, House Bill 898 was adopted by the Maryland legislature. This Bill introduces a tax exemption for specific digital and IT-supported services provided within a corporate group.
Timeline
From July 1, 2026, the supplies of specified digital services between intra-group affiliates are going to be outside the scope of sales and use tax in Maryland.
Intra-Group Exemption of Digital Services
In cases where both parties are members of the affiliated group, under the terms of the Maryland Revenue Code, the supplies of these services between members of the affiliated group are exempted from sales and use tax.